Reply to What is Middle Class....Really?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]

I think you need to reexamine your life.  You sound mean and angry.  What's wrong?  Upset you don't make $350k/year?[/quote]

Ha, not at all. I'm not actually the OP so I have no skin in the game, I just stepped in because the claim that a family that makes $350,000 a year couldn't afford to fly first class to Europe unless they had an inheritance was so laughable I had to say something[/quote]

I'm not the idiot who keeps insulting the other poster about her 100k income, but seriously, a family with HHI of 350k cannot afford a first class trip to Europe without outside help, saving for years, or running out of money for other things. In this area, 350k will get you a middle class lifestyle, nothing more. Expenses have gone up, and a 6 figure income doesn't get you much. To the people making less than 250k in this or other hcol area, do you have everything a middle class lifestyle provides without struggling? A family of at least 4, 3-4 bedroom house in a nice, safe neighborhood zoned to good schools, couple of moderate vacations a year, able to help with college because expenses have risen astronomically?[/quote]

So pardon if my numbers are not completely accurate, but I plugged a $350K salary into ADP's take home pay calculator, and assuming VA residency, exemptions for 2 kids, and maxing 401K's for two people, $350K will result in net pay of $16,577 a month. So from that you spend:

3-4 bedroom house in a safe area with good schools: $800K or around $5000 a month when including taxes/insurance

2 reliable (but not ultra luxury - this is middle class we're talking about) cars: ~$1,000 a month

college fund (assuming a $400K goal with 18 years of savings @ 4% growth): $1,250 a month

Groceries: $2,000 a month

Health Insurance: (assuming someone with a $350k job gets a health insurance option at least as good as a federal employee) $568/mo

Clothing: $1,000

Misc. expenses: $1,000

We're still at nearly $5,000 a month in net pay.  I'm not sure how many more expenses we can tack on, but that leaves this family $57,108 for two "moderate" vacations and a trip to Europe.  I don't know what your definition of "struggling" is, but that's not mine!

[/quote]

Not PP and I agree it's not struggling, but you forgot about student loans, utilities & house maintenance, car & life insurance, and medical care, among other things.  All of this adds up to more than $1,000 a month.  My student loan payment is $1000/month alone and I'm in the public service loan forgiveness program.  And to keep that "middle class" lifestyle after retirement, most people would need to save more than the minimum $18k/year/person in 401k's. [/quote]

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